As the business landscape becomes increasingly challenging in 2023, self-employed individuals can find solace in the fact that Resimac, a prominent non-bank lender, possesses the necessary expertise to assist them in weathering the storm.
Resimac’s general manager of distribution, Chris Paterson, said that self-employed borrowers, who may lack a complete year’s financial records or possess irregular income, can still fulfill the lender’s flexible credit policy requirements.
Resimac offers a comprehensive range of loan products that cater to customers aiming to rebuild their financial status.
Addressing concerns amid economic indicators
As interest rates continue to rise, many self-employed borrowers are growing increasingly concerned. The reallocation of funds toward higher home loan repayments, energy costs, and essential goods during the Christmas period has subdued retail trade and other sectors reliant on disposable income.
CreditorWatch data reveals a year-on-year increase of 87% in credit inquiries from businesses in November, with a 61% rise from the previous month. Rising rates and inflation have intensified the self-employed borrowers’ quest for financial relief.
Debt consolidation and holistic lending approach
Resimac has long recognized the needs and challenges faced by self-employed individuals, who constitute around 14% of Australia’s employed population. Paterson emphasized the importance of a lender that takes a holistic view of their position, considering factors such as employment history, historical and current income, security property, and overall circumstances.
Resimac comprehends that running a business differs from conventional employment, and it recognizes the enduring appeal of self-employment for individuals seeking flexibility and the opportunity to drive their own income. The lender aims to empower aspiring entrepreneurs by enabling them to establish and operate successful businesses.
Growing segment for Resimac and brokers
Resimac continues to witness growth in self-employed customers, with approximately 70% of broker settlements utilizing its near-prime and specialist products in November, primarily catering to this segment.
This trend is expected to persist despite the anticipated challenges of the coming year. Resimac distinguishes itself from competitors by offering highly competitive alternative documentation (alt-doc) products with some of the lowest rates in the sector.
These alt-doc products help alleviate borrowers’ financial burdens and facilitate debt consolidation, addressing common needs among the self-employed. Resimac’s product range also includes features such as offset accounts, redraw facilities, and Visa debit cards.
Brokers’ vital role and Resimac’s support
In supporting self-employed individuals during uncertain times, brokers play a crucial role. While some brokers may be new to alt-doc products, Resimac’s wealth of experience in this area makes it easy for them to navigate and understand these offerings.
Resimac’s Business Development Managers (BDMs) go the extra mile to comprehend brokers’ businesses and educate them about available solutions.
Additionally, the lender’s marketing communications keep brokers informed about market trends and Resimac’s assistance. Paterson said the non-bank aimed to challenge the perception of the self-employed in the lending market, emphasizing that this customer category can be high-quality, compliant, and viable.
Diversifying into this segment presents growth opportunities for brokers and strengthens relationships with clients, leading to referrals and business expansion.
Collaboration for mutual success
Resimac’s success in supporting self-employed borrowers positions it as the preferred lender for brokers serving this market. The lender’s products have resonated with self-employed individuals, and Resimac seeks to extend this success to brokers, encouraging collaboration.
By diversifying their market reach and delivering exceptional service, brokers can foster strong relationships with clients, ensuring future business growth. Such a strategic move not only benefits brokers’ bottom lines but also supports the resilient self-employed individuals who are vital contributors to a healthy economy.
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